EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0505*
HOUSE BILL 505
C5 4lr0543
CF 4lr0602
By: Delegate Charkoudian
Introduced and read first time: January 24, 2024
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Limitations on Cost Recovery by Public Service Companies and Reports on 2
Votes Cast at Meetings of Regional Transmission Organizations 3
(Utility Transparency and Accountability Act) 4
FOR the purpose of prohibiting public service companies from recovering through rates 5
certain costs; requiring certain public service companies to submit an annual report 6
to the Public Service Commission regarding costs related to certain activities; 7
requiring each electric company to be a member of a regional transmission 8
organization; requiring each electric company to submit an annual report to the 9
Commission regarding certain votes cast by the electric company and any affiliate of 10
the electric company at a meeting of the regional transmission organization; and 11
generally relating to cost recovery by public service companies and reports by electric 12
companies. 13
BY repealing and reenacting, without amendments, 14
Article – Public Utilities 15
Section 1–101(a) and (z) 16
Annotated Code of Maryland 17
(2020 Replacement Volume and 2023 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Public Utilities 20
Section 4–103 21
Annotated Code of Maryland 22
(2020 Replacement Volume and 2023 Supplement) 23
BY adding to 24
Article – Public Utilities 25
Section 4–504, 4–505, and 7–108 26
Annotated Code of Maryland 27
(2020 Replacement Volume and 2023 Supplement) 28 2 HOUSE BILL 505
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Public Utilities 3
1–101. 4
(a) In this division the following words have the meanings indicated. 5
(z) (1) “Public service company” means a common carrier company, electric 6
company, gas company, sewage disposal company, telegraph company, telephone company, 7
water company, or any combination of public service companies. 8
(2) “Public service company” does not include: 9
(i) a campground that provides water, electric, gas, sewage, or 10
telephone service to campers incident to the campground’s primary business of operating 11
and maintaining the campground; or 12
(ii) a person that owns or operates equipment used for charging 13
electric vehicles, including a person that owns or operates: 14
1. an electric vehicle charging station; 15
2. electric vehicle supply equipment; or 16
3. an electric vehicle charging station service company or 17
provider. 18
4–103. 19
[(a)] In setting just and reasonable rates under this title, the Commission may not 20
discourage the use of employee stock ownership plans by public service companies by 21
denying to the public service companies the full benefits of investment tax credits provided 22
in connection with these plans by the Internal Revenue Code. 23
[(b) A public service company may not charge off lobbying expenses against its 24
ratepayers.] 25
4–504. 26
(A) IN THIS SECTION, “LOBBYING OR POLITICA L ACTIVITIES” MEANS ANY 27
ACTION TAKEN AT THE STATE, COUNTY, OR MUNICIPAL LEVELS OF GOVERNMENT IN 28
CONNECTION WITH : 29
HOUSE BILL 505 3
(1) INFLUENCING LEGISLAT ION; 1
(2) PARTICIPATION OR INT ERVENTION IN ANY POL ITICAL CAMPAIGN 2
ON BEHALF OF OR IN OPPOSITION TO ANY CANDIDATE FOR PU BLIC OFFICE; OR 3
(3) ANY ATTEMPT TO INFLU ENCE ANY SEGMENT OF THE GENERAL 4
PUBLIC WITH RESPECT TO AN E LECTION, A LEGISLATIVE MATTER , AN EXECUTIVE 5
AGENCY DECISION , OR A REFERENDUM . 6
(B) A PUBLIC SERVICE COMPA NY MAY NOT RECOVER T HROUGH RATES ANY 7
COSTS ASSOCIATED WITH : 8
(1) MEMBERSHIP , DUES, SPONSORSHIPS , OR CONTRIBUTIONS TO A 9
BUSINESS OR INDUSTRY TRADE ASSOCIATION , GROUP, OR RELATED ENTITY EXEMPT 10
FROM TAXATION UNDER § 501 OF THE INTERNAL REVENUE CODE; 11
(2) LOBBYING OR POLITICAL ACTIVITIES , INCLUDING SUPPORTING 12
ACTIVITIES SUCH AS P OLICY RESEARCH , ANALYSIS, PREPARATION , AND PLANNING ; 13
(3) UNLESS APPROVED OR O RDERED BY THE COMMISSION, 14
ADVERTISING, MARKETING, COMMUNICATIONS , OR OTHER RELATED COS TS 15
IDENTIFIED BY THE COMMISSION THAT SEEK TO INFLUEN CE PUBLIC OPINION OR 16
CREATE GOODWILL TOWA RD THE PUBLIC SERVIC E COMPANY; 17
(4) TRAVEL, LODGING, OR FOOD AND BEVERAGE EXPENSES FOR THE 18
PUBLIC SERVICE COMPA NY’S BOARD OF DIRECTORS AND OFFICERS OR THE BOARD 19
OF DIRECTORS AND OFF ICERS OF THE PUBLIC SERVICE COMPANY ’S PARENT 20
COMPANY; 21
(5) ENTERTAINMENT OR GIF TS; 22
(6) ANY OWNED, LEASED, OR CHARTERED AIRCRAF T FOR THE PUBLIC 23
SERVICE COMPANY ’S BOARD OF DIRECTORS AND OFFICERS OR THE BOARD OF 24
DIRECTORS AND OFFICERS OF THE PUBLIC SERVIC E COMPANY’S PARENT COMPANY ; 25
OR 26
(7) INVESTOR RELATIONS . 27
4–505. 28
(A) THIS SECTION APPLIES ONLY TO A PUBLIC SERVICE COMPA NY WITH 29
MORE THAN 75,000 CUSTOMERS IN THE STATE. 30
4 HOUSE BILL 505
(B) (1) ON OR BEFORE JANUARY 1 EACH YEAR, EACH PUBLIC SERVICE 1
COMPANY SHALL SUBMIT TO THE COMMISSION A REPORT ITEMIZING ALL COSTS 2
ASSOCIATED WITH THE ACTIVITIES DESCRIBED IN § 4–504 OF THIS SUBTITLE. 3
(2) THE REPORT SHALL INCLUDE : 4
(I) COSTS SPENT BY THE P ARENT COMPANY OR AFF ILIATES OF 5
THE PUBLIC SERVICE C OMPANY THAT ARE DIRECTLY BILLED OR A LLOCATED TO THE 6
PUBLIC SERVICE COMPA NY; 7
(II) A LIST OF THE TITLE , JOB DESCRIPTION , AND SALARY OF 8
ANY PUBLIC SERVICE COMPA NY EMPLOYEE WHO PERFORM ED WORK ASSOCIATED 9
WITH THE ACTIVITIES DESCRIBED IN § 4–504 OF THIS SUBTITLE , INCLUDING THE 10
HOURS ATTRIBUTED TO THE WORK; 11
(III) A LIST OF THE TITLE , JOB DESCRIPTION , AND SALARY OF 12
ANY EMPLOYEE OF THE PARENT COMPANY OR AF FILIATE OF THE PUBLIC SERVIC E 13
COMPANY WHO PERFORMED W ORK ASSOCIATED WITH THE ACTIVITIES DESCR IBED 14
§ 4–504 OF THIS SUBTITLE, INCLUDING THE HOURS ATTRIBUTED TO THE WORK THAT 15
WERE DIRECTLY BILLED OR ALLOCATED TO THE PUBLIC SERVICE COMPA NY; 16
(IV) A LIST OF PAYMENTS THAT THE PUBLIC SERV ICE COMPANY 17
MADE TO ALL THIRD –PARTY VENDORS FOR AN Y EXPENSES ASSOCIATE D WITH THE 18
ACTIVITIES DESCRIBED IN § 4–504 OF THIS SUBTITLE , INCLUDING UNREDACTED 19
BILLING AMOUNTS , BILLING DATES , PAYEES, AND AN EXPLANATION OF EACH 20
EXPENDITURE IN D ETAIL SUFFICIENT TO DESCRIBE THE PURPOSE OF THE COST; 21
AND 22
(V) ANY OTHER INFORMATIO N THE COMMISSION CONSIDERS 23
RELEVANT. 24
7–108. 25
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 26
INDICATED. 27
(2) “AFFILIATE” HAS THE MEANING STAT ED IN § 7–501 OF THIS 28
TITLE. 29
(3) “MEETING” MEANS ANY COMMITTEE , USER GROUP, TASK FORCE, 30
OR OTHER PART OF THE REGIONAL TRANSMISSIO N ORGANIZATION IN WH ICH VOTES 31
ARE TAKEN. 32
HOUSE BILL 505 5
(4) “RECORDED VOTE ” MEANS A VOTE THAT IS TABULATED, EITHER 1
INDIVIDUALLY OR AS P ART OF A SECTOR , FOR ANY PURPOSE AT A MEETING, 2
REGARDLESS OF : 3
(I) WHETHER THE VOTE REPRESENTS A FINAL POSITION OF 4
ANY PERSON CASTING T HE VOTE; OR 5
(II) THE DECISION–MAKING AUTHORITY OF THOSE VOTING . 6
(5) “REGIONAL TR ANSMISSION ORGANIZAT ION” MEANS AN ENTITY 7
THAT QUALIFIES AS A REGIONAL TRANSMISSIO N ORGANIZATION UNDER 18 C.F.R. § 8
35.34. 9
(B) EACH ELECTRIC COMPANY SHALL BE A MEMBER OF A REGIONAL 10
TRANSMISSION ORGANIZ ATION. 11
(C) (1) ON OR BEFORE FEBRUARY 1 EACH YEAR , EACH ELECTRIC 12
COMPANY SHALL SUBMIT TO THE COMMISSION A REPORT O F ANY RECORDED VOTE 13
CAST BY THE ELECTRIC COMPANY OR, SUBJECT T O PARAGRAPH (2) OF THIS 14
SUBSECTION, AN AFFILIATE OF THE ELECTRIC COMPANY AT A MEETING OF A 15
REGIONAL TRANSMISSION ORG ANIZATION DURING THE IMMEDIATELY PRECEDIN G 16
CALENDAR YEAR . 17
(2) THE REPORT SHALL INCL UDE: 18
(I) ALL RECORDED VOTES CAST BY THE ELECTRIC COMPANY, 19
REGARDLESS OF WHETHE R THE VOTE IS OTHERWISE DISCLOSED; 20
(II) ALL VOTES CAST BY AN AFFILIATE OF THE ELECTRIC 21
COMPANY IF THE ELECTRIC COMPANY ITSELF DOES NOT VOTE ON THE MATTER ; AND 22
(III) A BRIEF DESCRIPTION EXPLAINING HOW EACH VOTE CAST 23
BY THE ELECTRIC COMPANY OR ITS AFFILIATE IS IN THE INTEREST O F THE PUBLIC. 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
October 1, 2024. 26